CODEL TIERNEY MEETS WITH PAKISTANI PRIME MINISTER

C O N F I D E N T I A L SECTION 01 OF 03 ISLAMABAD 002769

SIPDIS

E.O. 12958: DECL: 11/16/2019
TAGS: PGOV PREL PREF EAID ECON MOPS PK
SUBJECT: CODEL TIERNEY MEETS WITH PAKISTANI PRIME MINISTER
GILANI

Classified By: Ambassador Anne W. Patterson for reasons 1.4 (b, d).


1. (C) Summary: Prime Minister Gilani told CODEL Tierney
November 11 that the Pakistani people were united in the
fight against terrorism and supported military efforts in
Swat, Malakand and South Waziristan. However, he noted the
public was upset with Pakistan's failing economy, pointing
out concerns about shortages of electric power, natural gas
and sugar. Gilani said the military option was insufficient
to combat militants, explaining that support for IDPs and
reconstruction of war-affected areas played an important part
in counter-insurgency. Representative Tierney thanked Gilani
for Pakistan's fight against militants, adding that the
United States is committed to the bilateral relationship and
to transparent, long-term assistance. Representative Miller
noted that the United States' success in Afghanistan depended
on Pakistan doing well also. Gilani requested that Pakistan
be consulted on U.S. policy changes in Afghanistan, but also
stressed the need to have a strong bilateral relationship
separate from a trilateral one including Afghanistan. He
said he had reached out to Indian Prime Minister Manmohan
Singh, but that Kashmir was a "speed brake" on improved
India-Pakistan relations. End Summary.

Pakistan's Fight Against Militants
--------------


2. (C) In a November 11 meeting with a Congressional
delegation led by Congressman John Tierney (see para 11 for
list of participants),Prime Minister Gilani said that
success fighting militants in Malakand and South Waziristan
had led to terrorists attack across the country, as the
terrorists are "feeling the heat." He said the terrorists
were assassinating army and ISI leaders, and bombing police
training camps, and even schools. Gilani requested equipment
and training for law enforcement in settled areas, so they
would be able to detect suicide bombers and vehicle-borne
IEDs. He said that, even with the terrorist attacks the
Pakistani people remained united in the war against militant
groups. However, he said the Government of Pakistan (GOP)
did face criticism over the economy, which has worsened with
every attack. He explained that every time a bomb goes off,
investment capital flees the country. He said that the GOP
was under pressure to reduce electric power outages, end the
rationing of natural gas, and ameliorate the sugar shortage.
Representative Tierney thanked Pakistan for its sacrifices
fighting militants and stressed U.S. support for Pakistan and
those affected by war.


3. (C) Gilani said that the military alone could not defeat
the militants. Counter-insurgency campaigns also require
assistance to those affected by war. He said the Malakand
campaign was a success because the internally displaced
persons (IDP) were able to return "not after 20 years, but
only two months." He said the GOP provided each IDP family
with income support and, through programs like the Border
Trust Fund was reconstructing war-affected areas. The
provision of infrastructure -- schools, bridges and roads --
was key to winning the hearts and minds of those in
war-affected areas. Gilani planned to visit SWAT to assess
the reconstruction and development needs there and to
encourage provincial support for them. He said he had also
established a Martyrs' Fund for orphans and widows of law
enforcement and military personnel with initial funding of
$40 million, and suggested that a percentage of Fulbright
Scholarships be reserved for war orphans. Gilani said the
creation of Reconstruction Opportunity Zones (ROZ) could
bring development to the border regions through trade
development. Representative Tierney said that the ROZ
legislation had passed in the House and was pending in the
Senate, adding that he would work to ensure it was not
derailed.


4. (C) Representative Tierney asked what steps Pakistan was
taking to address human rights concerns related to the fight
against militants. Gilani said the main concern was that

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Pakistan lacked adequate prison space for all the
surrendering combatants. He said the U.S. had criticized
Pakistan in the past for releasing suspected terrorists too
quickly. He requested support for building additional, safer
prisons.

Development Assistance and Pakistani Public Opinion
-------------- --------------


5. (C) Gilani said that development aid should pass through
the GOP and local institutions. Representative Miller agreed
that more aid needed to reach the Pakistani people and pass
through the U.S. and Pakistani systems transparently. Gilani
directed the Ministry of Finance to create a more transparent
system. Minister of State for Economic Affairs Hina Rabbani
Khar said her division had put in place a cell to track U.S.
assistance monies as well as monitor and evaluate development
assistance programs. She thanked USAID for its "change in
focus" in deciding to move aid through the GOP. Gilani said
that trade was as important as aid, and requested a free
trade agreement (FTA) with the United States, as well as U.S.
help in securing better market access for Pakistan to the EU.
Khar concurred, suggesting that 30 years of aid has done
little to move public opinion or help the economy, but that
trade ties would. She said Pakistan wanted a trade agreement
with the United States in the same vein as those the U.S. has
with Oman, Egypt and Jordan.


6. (C) Gilani said that "many small gestures" could improve
Pakistani public opinion towards the United States. He said
investments in health, education, the power sector, and
infrastructure would improve perceptions of the United
States. He added that Secretary Clinton's engagement with
the media, civil society and military in her recent trip to
Pakistan made a difference. He also suggested that the USG
"extradite" Dr. Aafia Siddiqui to Pakistan on humanitarian
grounds.


7. (C) Representative Welch asked what steps Pakistan was
taking to raise revenue domestically for its development
needs. Khar acknowledged that the GOP had very low revenue
collections, but added that the GOP was reforming its Federal
Bureau of Revenue and introducing a value-added tax (VAT).
She said that the GOP would raise its collections this year
from 9 percent of GDP to 10.6 percent, a significant increase
given Pakistan's moribund economy and slumping manufacturing
sector.

Afghanistan
--------------


8. (C) Gilani said it is in Pakistan's national interest to
have a stable Afghanistan. Pakistan looks after 3.5 million
Afghan refugees, many of whom are now "almost Pakistani," and
some of whom have become terrorists. He said Afghanistan
needed a stable government with public involvement from an
independent media and civil society. Gilani requested that
Pakistan be consulted on changes to U.S. policy in Pakistan.
He added that he had very constructive talks with Secretary
Clinton where they agreed on the importance of bilateral ties
over trilateral ones with Afghanistan. Gilani said he did
not like the "Af/Pak" designation, as Pakistan did not want
to be "bracketed" with Afghanistan.


9. (C) Representative Kind asked for Gilani's thoughts on
raising U.S. troop levels in Afghanistan. Gilani said that
Pakistan had thought it unwise to add troops in the run-up to
the Afghan elections, as it might have sent the wrong
political signal. He said the United States should also
consider its eventual exit strategy as it commits new troops.
Gilani was concerned that a greater U.S. presence in Helmand
could force militants to spillover into Balochistan. Defense
Secretary Ali said that Pakistan did not have sufficient
troops to patrol the Balochistan border, but that military
coordination and U.S. military operations moving from north
to south, rather than east to west, could reduce the

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spillover of militants. Ali added that "we all know" that
India has "activities" in the region.

India
--------------


10. (C) Gilani said he understood the importance of
maintaining high-level communication with India. He had
planned to meet with Indian PM Manmohan Singh in Trinidad,
but cancelled the visit to remain in Pakistan and deal with
the controversy surrounding the proposed extension of the
national reconciliation order (NRO). He concluded by
observing that the dispute over Kashmir remained the "speed
brake" on improving bilateral relations with India.


11. (U) Participants

U.S.

Representative John Tierney (D-MA)
Representative George Miller (D-CA)
Representative Peter Welch (D-VT)
Representative Ron Kind (D-WI)
Ambassador Anne Patterson
Andrew Wright, Staff Director (Majority),Subcommittee on
National Security and Foreign Affairs
Scott Lindsay, Counsel (Majority),Subcommittee on National
Security and Foreign Affairs
Christopher Hixon, Senior Counsel (Minority),Committee on
Oversight and Government Reform
Major Louis Kangas, U.S. Army Liaison
Sargeant Keith McDonald, U.S. Army Liaison
Robbie Marks, Econoff (notetaker)

Pakistan

Prime Minister Yousuf Raza Gilani
Defense Minister Chaudry Mahmood Muktar
Interior Minister Rehman Malik
Minister of State for Economic Affairs Hina Rabbani Khar
Senator Sughra Imam
PM Private Secretary Nargis Sethi
Foreign Secretary Salman Bashir
Economic Affairs Division Secretary Sibtain
Defense Secretary Lt. General (ret.) Syed Atar Ali
PM Military Secretary Brigadier Nasir Dilawar Shah
Foreign Ministry Additional Secretary Attiya Mehmood
PM Principal Staff Officer Yousaf Nasseem Khokar
Acting PM Press Officer Mian Jahangir Iqbal


12. (U) This cable was drafted after CODEL Tierney left
Pakistan.
PATTERSON